Note

DRAFT REPORTS

ACKNOWLEDGEMENT

The Committee wishes to express its sincere thanks

to all who provided submissions or contributed in any

other way to this initial investigation into long-term

unemployment.

FOREWORD

In the time available, the Economy Committee has

examined evidence submitted to it by a number of

local authorities and other relevant organisations.

While realising the importance of each of the key

issues considered in Part III of this report the

Committee recognises that the generation of new job

opportunities through investment is essential.

Having considered various options for dealing with

the problem of long-term unemployment we now

bring forward these initial conclusions.

It is the Committee's intention to further deliberate

and consult prior to completing a final, and more

detailed report, in the early Autumn.

REVIEW OF LONG-TERM UNEMPLOYMENT

CONTENTS

Page

I. INTRODUCTION 1

II. EVIDENCE 3

III. KEY ISSUES 5

1. INVESTMENT 5

2. TRAINING 7

3. SINGLE INTEGRATED PROGRAMME 9

4. BENEFITS TRAP 11

5. SKILLS 13

6. SELF-EMPLOYMENT 15

7. COMMUNITY LED INITIATIVES 16

8. SPECIAL NEEDS 17

9. CHILD CARE PROVISION 18

IV. SUMMARY OF RECOMMENDATIONS 19

Appendix A - Membership of Committee

REVIEW OF LONG-TERM UNEMPLOYMENT

I. INTRODUCTION

1 The Economy Committee (Standing Committee E) of the Northern

Ireland Forum for Political Dialogue was set up with the following

Terms of Reference:-

"To examine issues relevant to the performance of the

Northern Ireland economy and report to the Forum at

periodic intervals."

2. Having begun its work of examining issues affecting the performance of

the Northern Ireland economy the Committee focused on long-term

unemployment as one of a number of key areas identified as worthy of

consideration.

3. There are areas within Northern Ireland where unemployment has

become a way of life over a number of generations. In such areas there

is simply not enough employment for the people who live there and the

number of school leavers each year exceeds the number of jobs

available for them. There are, in such areas, families where for

generations heads of households have been on long-term unemployment

and this has inevitably become a way of life for too many people.

1

4. In its 1996/97 Operational Plan the Training and Employment Agency, in

line with its commitment to improving service to its customers, set itself

an objective to examine the needs of the long-term unemployed and

review existing provision.

5. In March 1997 the Agency issued a document discussing the economic

context of its work in relation to the long-term unemployed and offering

for discussion approaches for the recovery and reintegration of the

long-term unemployed into the workforce.

6. The discussion document seeks views on how best the Agency can

utilise its resources and provide appropriate measures to make maximum

impact on long-term unemployment.

7. Having identified long-term unemployment as a key area for

consideration and wishing to provide a response to the Training and

Employment Agency's consultation document, the Economy Committee

brings forward this initial response.

2

II. EVIDENCE

1. As part of our review we sought comments on the long-term

unemployment consultation document from a wide range of

organisations with an interest in the economy including the 26 District

Councils. These organisations were also requested to make brief written

submissions to the Committee on measures to address the problem of

long-term unemployment.

2. Responses have been received from the following organisations:-

(a) District and Borough Councils

Ballymena Borough Council

Banbridge District Council

Coleraine Borough Council

Cookstown District Council

Craigavon Borough Council

Down District Council

Larne Borough Council

Lisburn Borough Council

Moyle District Council

(b) Other Organisations

Bryson House

Confederation of British Industry (Northern Ireland)

Enterprise Ulster

Fermanagh Community Work Programme

3

Lenadoon Community Forum

Northern Ireland Committee of the Irish Congress of Trade

Unions

Northern Ireland Federation of ACE Schemes

Strabane and District Community Work Programme

4

III. KEY ISSUES

1. INVESTMENT

1.1 Attracting new investment must continue to be a priority if an effective

attack is to be made on the persistent and costly burden of long-term

unemployment. The creation of additional job opportunities is

necessary to ease current high levels of unemployment and, in

particular, long-term unemployment. Much good work has already

been done by both the statutory agencies and by individuals to attract

new investment, with success often coming through personal contacts.

1.2 Greater assistance should be made available to industry as an incentive

to provide secure employment for the long-term unemployed. This

could perhaps take the form of additional 'tax breaks' as opposed to

direct employment grants which often in the past have failed to secure

long-term employment. This will involve a range of complementary

measures including training, skills audit, work experience and work

placement, and suitable remuneration. The Committee notes the

Chancellor's announcement in the Budget Statement that assistance is to

be offered to employers who take on a long-term unemployed person.

1.3 The Industrial Development Board (IDB) could consider the possibility

of offering grant assistance to any indigenous or potential inward

investor with the proviso that, where possible, a percentage of the new

workforce should be drawn from the ranks of the long-term

5

unemployed. The Committee plans to consider the work of IDB and

LEDU in more detail in a future report.

Recommendation

1.4 The Committee recommends, therefore, that both individuals and

the statutory agencies should continue and enhance their efforts

to attract both inward and indigenous investment and that

Government should offer greater assistance to the business

community as an incentive to provide secure employment for the

long-term unemployed.

6

2. TRAINING

2.1 As most new industries are likely to involve new technology, the

long-term unemployed will require suitable training or re-training to

prepare them to take up jobs of this type with established or new

companies which have been encouraged to invest in areas of high

unemployment.

2.2 Primary responsibility rests with Government in partnership with

employers to train the long-term unemployed to the required standard so

that they can avail of the opportunities which new investment can bring.

Regular re-training can in itself be a major contributor to the problems

of the long-term unemployed.

2.3 There is a continuing need to finance a variety of approaches for the

training of the long-term unemployed. Participation in both full-time

and part-time education should be encouraged as well as skills refresher

courses for those whose unemployment is not due to a declining

industry. Government Agencies, in consultation with education and

training institutions, should simplify and standardise rules to assist

unemployed people undertake education and training.

2.4 For those suffering the effects of long-term unemployment,

Government should expand the provision of motivation courses and

training in interviewing skills and CV completion. The Committee notes

that currently these are only available in selected areas. Those who are

7

willing should be offered training in skills/topics relevant to new

industries or industries that are planning to expand.

2.5 Voluntary placement schemes should be developed to allow new

graduates to expose themselves to industry and its demands and

enhanced investment and greater effort should be made by Government

to allow existing training schemes to provide tailored training,

co-designed by and for local industry.

2.6 The commercial sector should be encouraged to form partnerships with

the voluntary sector and share in the support and mentoring of people

as they make their return to the world of work.

2.7 Learning support units should be set up to offer additional support and

assistance to slow learners and low achievers in reaching their targeted

outcomes. Second chance educational opportunities could address the

basic needs of those people for whom the educational system has failed.

Recommendation

2.8 The Committee recommends that adequate finance be made

available to provide the appropriate training and assistance to

bring the long-term unemployed up to the required standard to

enable them to seek suitable employment.

8

3. SINGLE INTEGRATED PROGRAMME

3.1 The T&EA, in its consultation document on Long-Term Unemployment,

states that in developing its existing programmes and services for the

long-term unemployed, a multi-levelled and multi-disciplinary approach

will be required.

3.2 Commenting on the need for a single co-ordinated policy, Craigavon

Borough Council has stated that "the approach in the past would appear

to have been fragmented". They would encourage the T&EA and

Central Government "to take an integrated approach towards tackling

the long-term unemployment issue, insofar as this recognises the need

to have a single policy dealing with the related social and economic

programmes".

3.3 Bryson House in their response to the Committee also recognise that

"any programme that is going to aim to tackle such a diverse range of

issues must be multi-layered and encompass opportunities for all at

differing levels of entry".

3.4 A single integrated programme approach is dependent on providing the

access, guidance and learning opportunities to meet the individual needs

of the unemployed at the appropriate time, place, pace, and cost. The

programme should include a flexible process relating to the needs of the

unemployed person and building on their strengths progressively to

assist them in gaining qualifications and employment. Progressive

9

assistance of this type is already available to some of the long-term

unemployed through the Jobskills Programme.

3.5 The Committee believes that the level of long-term unemployment can

be reduced through a concerted and co-ordinated approach by

Government, the community/voluntary sector and the private sector.

The development of local partnerships involving all the key players is

also to be encouraged. There is a need for greater complementarity

with various schemes being co-ordinated under one over-arching body.

Recommendation

3.6 The Committee recommends that Government take an integrated

approach towards tackling the long-term unemployment issue by

co-ordinating policies into a single integrated programme.

10

4. BENEFITS TRAP

4.1 The interaction of benefits and wages is a factor that has to be taken

into consideration when framing policies for the long-term unemployed.

This is particularly important in Northern Ireland where families are

generally larger and wages lower than in the rest of the United

Kingdom. The question of transition from the receipt of benefits to the

receipt of wages also needs to be tackled.

4.2 As the benefit system generally operates at the "family unit" level it is

necessary to deal with the household and not simply the individual. The

Committee feels that the major issue of redesign of the benefits system

must be addressed to ensure that, as far as possible, people in work or

on employment schemes are paid more than the total benefit income to

which their household would otherwise be entitled. People are likely to

be discouraged from working if their earnings do not exceed these

thresholds.

4.3 While accepting that there is a need to redesign benefits the Committee

also feels that steps should be taken to ensure that those in employment

receive adequate wages. People entering employment with very low

wages should continue to be entitled to receive sufficient benefit

payments to bring them up to a 'living wage' which should always be at

a level higher than the overall level of benefits paid to the unemployed to

provide an inducement to work.

11

4.4 In the context of this section the Committee supports the Government's

approach under its new "Welfare to Work" initiative which is designed

to give new hope to the long-term unemployed. It is hoped that this

may go towards alleviating the problem of long-term unemployment.

Recommendation

4.5 The Committee recommends that the benefits system should be

redesigned to ensure that the long-term unemployed are not

discouraged from working because of a 'benefit trap' resulting

from a disparity between benefits and wages.

12

5. SKILLS

5.1 Despite the level of unemployment that exists in Northern Ireland,

vacancies are often difficult to fill. There may be a number of reasons

for this such as low pay, poor reputation, dirty working conditions,

unfriendly environment, poor management etc.

5.2 However, there appears to be a gap between the requirements of local

industry and the quality and variety of output being delivered by the

Education sector and there is, therefore, a need to establish and create

meaningful linkages and joint ventures between education and industry.

Education and training need to be matched by policies which ensure that

there is a demand for the skills being developed.

5.3 Areas that need to be addressed if the skills gap is to be closed include

improvements in identification of skills needs, improved information

flows and improved counselling and guidance. There is also a need to

address core skills deficiencies eg literacy and numeracy at the earliest

possible stage.

5.4 Under-achievement in education also needs to be addressed if the flow

into long-term unemployment is to be reduced. The extent of

under-achievement within Northern Ireland remains high and a

concerted effort within the educational system is required to reduce it.

One area that needs to be considered in relation to this is the retention of

selection at the age of eleven.

13

Recommendation

5.5 The Committee recommends that the problem of

under-achievement in education be addressed and that greater

linkages be established between education and industry.

14

6. SELF-EMPLOYMENT

6.1 It is recognised that LEDU through its 'Self Start' programme offers a

range of support for people who wish to become self-employed.

However, more could be done to promote the option of

self-employment as a means of reducing the numbers of people who

have been unemployed for long periods of time and further

consideration should be given to the introduction of additional incentive

packages for those who are prepared to become self-employed.

6.2 People must also be made aware of the full implications of moving into

self-employment and have possible pitfalls explained to them. Schemes

are needed to offer training to those interested before they become

self-employed and to help those who do establish their own businesses,

particularly during the first three years which normally proves to be the

most difficult period.

6.3 Suggested help packages could take the form of tax relief or financial

assistance to help pay for the professional assistance of an accountant,

for example.

Recommendation

6.4 The Committee recommends that training and financial assistance

(including risk capital) should be available to assist long-term

unemployed people who have the ability and opportunity to

establish their own business.

15

7. COMMUNITY LED INITIATIVES

7.1 Several District Councils have introduced schemes to assist long-term

unemployed members of the local community. For example, Larne

Development Forum, in consultation with the local Social Security and

T&EA Offices, has set up a Jobseekers Action Point. This is a

community led initiative which has been established to provide

counselling, guidance, and advice on jobseeking and other options, to

unemployed people, with a particular focus on those 'longer term'

unemployed clients.

7.2 Partnership between District Councils, Community Work Programme

managers and local community group providers could have a favourable

impact on the provision of work experience for the long-term

unemployed as well as empowering local communities.

Recommendation

7.3 The Committee wishes to highlight community led initiatives as

making an important contribution to the reduction of long-term

unemployment.

16

8. SPECIAL NEEDS

8.1 In taking an integrated approach towards tackling the long-term

unemployment issue account should be taken of the special needs of

groups within the long-term unemployed, for example, older people, the

disabled, ex-prisoners etc.

8.2 There must also be special targeting of areas of social need. Any new

programme must match local regeneration needs with wider economic

strategies and policies.

Recommendation

8.3 The Committee recommends that account should be taken of the

special needs of groups within the long-term unemployed.

17

9. CHILD CARE PROVISION

9.1 The availability of child care facilities has a direct impact on long-term

unemployment. Indeed, one of the factors affecting those wishing to

undertake training and returnees to work is the lack of provision of

affordable child care. This needs to be addressed and may in itself

create additional new employment opportunities. The Committee was

glad to note the assistance which the Chancellor announced in his

Budget proposal for a National Childcare Strategy.

Recommendation

9.2 The Committee recommends that consideration be given to the

provision of affordable child care to enable unemployed parents to

return to work.

18

IV. SUMMARY OF RECOMMENDATIONS

1. Both individuals and the statutory agencies should continue and

enhance their efforts to attract both inward and indigenous

investment.

2. Government should offer greater assistance to the business

community as an incentive to provide secure employment for the

long-term unemployed.

3. Adequate finance should be made available to provide the

appropriate training and assistance to bring the long-term

unemployed up to the required standard to enable them to seek

suitable employment.

4. Government should take an integrated approach towards tackling

the long-term unemployment issue by co-ordinating policies into a

single integrated programme.

5. The benefits system should be redesigned to ensure that the

long-term unemployed are not discouraged from working because

of a 'benefit trap' resulting from a disparity between benefits and

wages.

19

6. The problem of under-achievement in education should be

addressed.

7. Greater linkages should be established between education and

industry.

8. Training and financial assistance (including risk capital) should be

available to assist long-term unemployed people who have the

ability and opportunity to establish their own business.

9. Full recognition should be given to community led initiatives

which make an important contribution to the reduction of

long-term unemployment.

10. Account should be taken of the special needs of groups within the

long-term unemployed.

11. Consideration should be given to the provision of affordable child

care to enable unemployed parents to return to work.

20

APPENDIX A

MEMBERSHIP OF

STANDING COMMITTEE E

(THE NORTHERN IRELAND ECONOMY)

Ulster Unionist Party - Mr D Nesbitt - Chairman

Mr R Stoker

Mr J Clarke

Mrs M Steele

Democratic Unionist Party - Mr St C McAlister - Vice-Chairman

Mr S Wilson

Rev E Smyth

Mr M Carrick

Alliance Party - Mr S Neeson

Mr S McBride

*Mr P Osborne

UK Unionist Party - Mr C Wilson

*Mr P Roche

NI Women's Coalition - Ms M McWilliams

*Ms N Heaton

*Ms P Sagar

Labour - Mr M Curran

*Mr W White

Ulster Democratic Party - Mr G McMichael

*Mr D Adams

Progressive Unionist Party - Mr H Smyth

*Mr B Hutchinson

*attend the Committee on behalf of the party under Rule 14(4)(a) of the

Forum Rules of Procedure.

2

• Interim Report on Long-Term Unemployment (introduced on 1997-07-18 00:00:00 - CREATE - e828543) [This document] [view current proposal at this moment]
  • None (introduced on 1997-07-18 00:00:00 - REPORT_PROPOSAL - e828544) [view current proposal at this moment]